Fed signals it will likely hike interest rate in March to curtail inflation – By Paul Davidson (USA Today) / January 26, 2022
- The Federal Reserve held its key interest rate near zero Wednesday.
- But the Fed hinted it may hike that interest rate in March.
- The interest rate hike aims to rein in soaring consumer prices and inflation.
The Federal Reserve is taking off the gloves in its bid to fight a historic surge in inflation.
The Fed held its key interest rate near zero Wednesday but said it will “soon be appropriate” to raise it, hinting that a rate hike in March is all but certain. The increase would be the first in more than three years and kick off what’s likely to be a flurry of three or more quarter-point increases this year aimed at reining in sharply rising consumer prices.
Speculation about the widely expected move has been a major reason for the stock market’s sharp sell-off this month. The Fed’s statement wiped out the market’s gains Wednesday, and the Dow Jones industrial average closed down 130 points.
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